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The changes take effect from 1 January 2012

According to Budget Bill 2012, the Real Estate Transfer Tax Act is amended by introducing an additional tax of 2.5% if Austrian real estate is transferred to an Austrian Private Foundation or a similar entity.

Therefore, the total real estate transfer tax applicable amounts to 6%, which is the same tax rate as initially provided for in the Act on Taxation of Transfers to Foundations.

Consequently, the latter was revised by exempting the transfer of (domestic and foreign) real estate from taxation.

Further, the tax has to be assessed on the higher value of either three times the taxable value or the purchase price.

The amendments were necessary due to the decision by the Constitutional Court, which held that the current calculation of the real estate transfer tax applicable to transfers of real estate to an Austrian Private Foundation or similar entities is unconstitutional.

The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.